What is a Charitable Annuity Trust?
A Charitable Remainder Annuity Trust can be established by irrevocably transferring assets to PlannedGiving.us, which makes fixed annual payments to you and/or other beneficiaries. At the end of the trust term, the remainder of the trust’s assets are distributed to the charitable organization of your choice. At the time the trust is established, you and PlannedGiving.us agree to the amount of the annual payment to you and/or other beneficiaries. The amount of the annual payment must be at least 5% of the trust asset’s initial fair market value. It is generally taxable to the beneficiaries. The fixed annual payment amount may appeal to older beneficiaries who are not as concerned about the effects of inflation over time.
This May Appeal to You If…
You want to make a charitable gift and you:
- Want to receive fixed annual payments for life
- Don’t want to pay immediate capital gains tax on the transfer of appreciated assets
- Want to reduce your current income taxes with an income tax charitable deduction
- Have assets you are willing to give away
- Would like your CRAT to be managed by PlannedGiving.us